Cebu working closely with Tholons to regain spot
DEC 12 – Cebu IT/BPM Organization (CIB.O) managing director Wilfredo Sa-a Jr. revealed that his office is working closely with Tholons in an effort to get a better ranking in 2018. Sa-a said his office has been in talks with Tholons managing director Avinash Vashista to know more about the new criteria that are being considered for the Services Globalization Index Top 100 super cities.
This year, Cebu dropped to 12th spot from 8th in 2016. Part of the decline was due to the fact that Tholons introduced for the first time innovation, startup ecosystem and digital transformation in its assessment. These new criteria, according to Sa-a, may have affected Cebu’s ranking this year.
BPO resurgence forecast in 2018 – Leechiu
DEC 13 – Despite the decline in office take-up in 2017, the BPO industry is likely to enjoy renewed growth next year, said David Leechui, CEO of Leechui Property Consultants. Improved relations between the Philippine and the US, and the expected advantages of the Tax Reform Acceleration and Inclusion (TRAIN) bill for the industry will pave the way for a BPO resurgence.
As of 30 November 2017, the office take-up of the IT-Business Process Manufacturing (IT-BPM) sector expanded to as much as 349,506 sqm, nut was 28% lower than the 485,100- sqm take-up in 2016. A good growth indicator, Leechui said, is that some of the world’s largest companies are setting up shared service operations in the country that will employ tens and thousands of Filipinos.
New South Wales eyes ICT opportunities in the Philippines
DEC 11 – New South Wales Premier Gladys Berejiklian said businessmen in New South Wales are looking at opportunities in the Philippines’ information and communications technology (ICT) sector. Berejiklian visited the Philippines in early December. Department of Trade and Industry Secretary Ramon Lopez said the government of New South Wales expresses its interest in boosting its economic relations with the Philippines.
Lopez said the Philippines welcomes Australian investors and businesses that will help the country uplift the lives of those at the bottom of the economic pyramid. Berejiklian said the Philippines’ strong economic growth and English-speaking workforce continue to attract Australian investors.
IT-BPO to account for 50% of total exports by 2022
DEC 12 – Senen Perlada, executive director of the Bureau of Export Managing Bureau, said that information technology – business process outsourcing (IT-BPO) will account for about half of the Philippines’ total exports by 2022. This is substantially higher than the 32% share that the services sector currently enjoys.
The new Philippine Export Development Plan 2018-2022 is forecasting that services will take half of total exports by 2022, despite the dangers of BPO activity slowing down. Perlada said the country is expected to capture a significant percentage of the world’s outsourcing business and that currently, it is showing no signs of slowing down.
Global cloud BPO market set to hit USD95bn by 2025
DEC 14 – A new report released by Research and Markets predicts that the global cloud BPO market is on track to grow USD94.5bn by 2025 from USD31.58bn last year. The report noted that high adoption of cloud computing in different regions is providing significant opportunities for the providers of cloud BPO services to increase their market shares.
By the end of 2016 alone, the cloud computing industry had achieved significant adoption across all the major industries worldwide, according to the report. However, the report stressed that rising concerns on data security, data breach, ransomware, malware injection, and Denial-of-Service attacks are among the main restraining factors in the growth of the market.